Trade chief urges US to treat South Korea, Japan on separate terms

SEOUL, October 01 (AJP) - South Korea’s trade minister said Wednesday that he is working to persuade Washington to recognize the differences between the South Korean and Japanese economies in tariff talks with the United States.

Speaking at a policy forum in Seoul, Trade Minister Yeo Han-koo said that while the U.S. trade deficit with both South Korea and Japan appeared similar last year, the two economies diverge sharply in their industrial structures and foreign exchange systems.

“We are actively explaining these differences to the U.S.,” Yeo said.

The minister also raised questions about Japan’s $550 billion investment pledge to the United States, noting uncertainties about how Tokyo intends to finance the commitment.

On automobiles, a recurring source of friction, Yeo said Seoul remains engaged in negotiations over U.S. tariffs. A July agreement sought to lower the 25 percent tariff on cars to 15 percent, but the deal has yet to be finalized. He underscored the auto industry’s importance to South Korea and said maintaining competitive leverage in talks with Washington was a priority.

Yeo described the current trade negotiations as more complicated than the 2018 renegotiation of the KORUS Free Trade Agreement, forecasting further challenges in the coming years.

With nearly 40 percent of South Korea’s exports going to the U.S. and China, Yeo said the country must adopt a more strategic approach. He urged diversification into emerging markets, particularly Southeast Asia, citing its youthful demographics and affinity for Korean culture.

The government, he said, is preparing to strengthen its “New Southern Policy” to seize those opportunities.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.